In addition to One Market, the portfolio sold to Morgan Stanleyincludes One Maritime Plaza (534,000 sf), 150 California St.(201,000 sf), 201 California St. (250,000 sf), 60 Spear St.(133,000 sf), 188 Embarcadero (aka Bayside Plaza, 88,000 sf) andthe 75 Howard St. parking garage. The development project isFoundry Square I, a $145-million redevelopment that when completewill be the new headquarters of Barclays Global Investors.

Earlyreports regarding the deal between Blackstone and MorganStanley estimated the deal at $2.5 billion and $4.14 billion.Properties thought to be in the deal that ultimately were notinclude: One Post (421,000 sf), 201 Mission (489,000 sf) and 580California St. (318,000 sf). The one property specifically left outof the deal from the start is the Ferry Building, a 240,000-sfdevelopment for which a $100-million rehab was completed in 2003.Equity Office's entire Bay Area portfolio totals approximately 14.5million sf.

Neither Blackstone nor Morgan Stanley could be reached Wednesdayfor comment on the acquisition. In a prepared statement, MorganStanley managing director Michael Franco describes the deal as a"rare opportunity to acquire a significant portfolio ofwell-located assets in San Francisco's central business district,one of the most supply constrained office markets in the country.We believe that the occupancy characteristics of these high-qualityoffice buildings coupled with our expectation for one of thefastest net operating income growth rates of any city in the nationposition the portfolio for outperformance."